31386 paragraphs found
In evaluating the business rationale of a significant related party transaction outside the entity’s normal course of business, the auditor may consider the following: Whether the transaction: Is overly complex (for example, it may involve multiple …
The auditor may also seek to understand the business rationale of such a transaction from the related party’s perspective, as this may help the auditor to better understand the economic reality of the transaction and why it was carried out. A business …
Authorisation and Approval of Significant Related Party Transactions (Ref: Para. 23(b) ) …
Authorisation and approval by management, those charged with governance, or, where applicable, the shareholders of significant related party transactions outside the entity’s normal course of business may provide audit evidence that these have been duly …
A smaller entity may not have the same controls provided by different levels of authority and approval that may exist in a larger entity. Accordingly, when auditing a smaller entity, the auditor may rely to a lesser degree on authorisation and approval …
Assertions That Related Party Transactions Were Conducted on Terms Equivalent to Those Prevailing in an Arm’s Length Transaction (Ref: Para. 24 …
Although audit evidence may be readily available regarding how the price of a related party transaction compares to that of a similar arm’s length transaction, there are ordinarily practical difficulties that limit the auditor’s ability to obtain audit …
The preparation of the financial report requires management to substantiate an assertion that a related party transaction was conducted on terms equivalent to those prevailing in an arm’s length transaction. Management’s support for the assertion may …
Evaluating management’s support for this assertion may involve one or more of the following: Considering the appropriateness of management’s process for supporting the assertion. Verifying the source of the internal or external data supporting the …